American Water Works Company AWK is scheduled to release third-quarter 2026 results on Oct. 28, after market close. The company delivered a positive earnings surprise of 1.26% in the last reported quarter.
Let us discuss the factors that are likely to be reflected in the upcoming quarterly results.
Q3 Expectations for AWK
The Zacks Consensus Estimate for earnings is pegged at $2.11 per share, implying a year-over-year increase of 8.76%.
The consensus estimate for revenues is pinned at $1.47 billion, indicating growth of 1.46% from the year-ago reported number.
Factors Likely to Have Impacted AWK's Q3 Performance
American Water Works’ acquisition-driven expansion and organic growth initiatives are likely to have supported third-quarter 2026 performance. In addition to potential synergies from the June 30, 2026 acquisition of the Hopewell Borough water system, earnings are expected to have benefited from four other acquisitions completed during the third quarter.
The company's ongoing investments in infrastructure modernization and replacement are expected to have improved operational efficiency and service reliability while supporting customer growth, higher demand and rate base expansion.
Newly implemented rates across AWK’s regulated operations are likely to support third-quarter 2026 results by enabling cost recovery on infrastructure investments and providing greater earnings visibility. On Sept. 9, 2026, AWK's unit New Jersey American Water received approval from the New Jersey Board of Public Utilities to implement new rates effective Sept.15, 2026, which are expected to have positively impacted third-quarter earnings.
However, higher financing costs are likely to have pressured third-quarter earnings.
What Our Quantitative Model Predicts About AWK
Our proven model does not predict an earnings beat for American Water Works this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.
AWK’s Earnings ESP: The company has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
AWK’s Zacks Rank: Currently, American Water Works carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.
American Water Works Company, Inc. Price and EPS Surprise
American Water Works Company, Inc. price-eps-surprise | American Water Works Company, Inc. Quote
Stocks to Consider
Investors may consider the following players from the same sector, as these have the right combination of elements to post an earnings beat this reporting cycle.
Entergy ETR is set to report third-quarter results on Nov. 2 and is likely to have come up with an earnings beat. It has an Earnings ESP of +1.01% and a Zacks Rank #2 at present.
ETR’s long-term (three to five years) earnings growth rate is 10.16%. The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pinned at $1.71, which implies a year-over-year increase of 11.76%.
Southwest Gas SWX is scheduled to report third-quarter results on Nov. 4 and is likely to have come up with an earnings beat. It has an Earnings ESP of +18.87% and a Zacks Rank #2 at present.
SWX’s long-term earnings growth rate is 11.15%. The Zacks Consensus Estimate for third-quarter EPS is pinned at 18 cents, which implies a year-over-year surge of 200%.
Evergy EVRG is scheduled to report third-quarter results on Nov. 5 and is likely to have come up with an earnings beat. It has an Earnings ESP of +4.41% and a Zacks Rank #2 at present.
EVRG’s long-term earnings growth rate is 9.07%. The Zacks Consensus Estimate for third-quarter EPS is pinned at $2.27 per share, which implies a year-over-year increase of 11.82%.
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American Water Works Company, Inc. (AWK): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).